Abstract The development of an advance and safer hybrid car technology is necessary in today’s market due to the shortage of fossil fuel and global warming problem. The objectives of this paper are to investigate and identify the factors and rationales that move Toyota into hybrid vehicle production. PESTLE analysis is used to analyze the collected secondary data. According to PESTLE analysis, there are several reasons that affect Toyota to produce hybrid car. Based on the PESTLE analysis, all the factors are reasonable to support Toyota move to hybrid vehicle production. Key word-Toyota, hybrid car, PESTLE analysis 1. Introduction In the last couple of years, automotive industry was coming up with great innovations nowadays in order to fulfill the demand of the market [1]. The most recent innovation was mainly focus on the aspect of environmental and energy utilization issues. Therefore, hybrid car has been introduced. Hybrid car technology is type of technologies that made the vehicle utilize at least two different power sources in order to move the car. In general, the hybrid car type which available in the market is hybrid electric vehicles (HEVs) such as Toyota Prius Hybrid and Honda Civic Hybrid. A HEV is using the combination of the internal combustion engine with electrical motors to make the vehicle move. Its dual engine characteristic will improve the fuel efficiency and even help in increasing the performance of the vehicle. However, the conventional cars run on a single fuel resource namely gasoline, petrol and diesel. Due to the arising issues regarding the...